SMSF pensions and lump sums

Self-managed superannuation funds (SMSFs) can pay whatever benefits are allowable by their governing rules (trust deed). Most typically, this allows SMSFs to pay benefits as either lump sums or pensions.

In addition to the different types of payments that a SMSF can make, in this section you will learn about the process of starting a pension, transitioning from the accumulation phase into the pension phase, and all the steps that are required as a SMSF trustee to commence a pension.

You will learn all about the importance of exempt current pension income (ECPI) and how to ensure that you maximise this valuable benefit. You may also need to be aware of the transfer balance cap, and how to navigate these complex rules.

For those who have reached preservation age and would like to commence a pension while still retaining a connection to the workforce, a transition-to-retirement (TTR) pension might be worth considering.

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